Philippine Supreme Court Jurisprudence


Philippine Supreme Court Jurisprudence > Year 1961 > April 1961 Decisions > G.R. No. L-16596 April 26, 1961 - MANILA RAILROAD COMPANY v. CITY OF DAGUPAN, ET AL. :




PHILIPPINE SUPREME COURT DECISIONS

EN BANC

[G.R. No. L-16596. April 26, 1961.]

MANILA RAILROAD COMPANY, Plaintiff-Appellant, v. CITY OF DAGUPAN, ET AL., Defendants-Appellees.

Simeon M. Gopengco, for Plaintiff-Appellant.

Augusto O. Saroca for Defendants-Appellees.


SYLLABUS


1. TAXATION; REAL ESTATE TAX; WHEN PROPERTIES OF MANILA RAILROAD COMPANY NOT EXEMPT FROM TAXATION. — The exemption from taxation of properties of the Manila Railroad Company is limited to those held by it for the proper accomplishment of its stated purpose in the franchise, i.e., "to locate, construct, equip, maintain and operate certain railways . . ." (see Sec. 1, Act 1510). So that, where as in the instant case, the property involved are being merely rented to private individuals, the same are not exempt from taxation.


D E C I S I O N


REYES, J.B.L., J.:


Appeal on pure questions of law from the decision of the Court of First Instance of Pangasinan dismissing plaintiff’s complaint for the refund of P87.60 paid under protest by it as real estate taxes to the City of Dagupan.

The only issue raised here and in the court a quo is whether or not certain parcels of land situated in Dagupan City, otherwise known as Cadastral Lots Nos. 8942, 8713, 3212, 358, 357, 4193, 6369, and 6444, owned by the Manila Railroad Company and leased by it to private individuals, are exempt from the payment of real estate taxes to defendant City in view of plaintiff company’s charter (Act No. 1510), the pertinent portions of which read:jgc:chanrobles.com.ph

"12. In consideration of the premises, and of the granting of his concession or franchise, there shall be paid by the grantee to the Philippine Government, annually, for the period of thirty (30) years from the date hereof, an amount equal to one half of one (1/2%) per cent of the gross earnings of the grantee in respect of lines covered hereby for the preceding year; after said period of thirty (30) years, and for fifty (50) years thereafter, the amount so to be paid annually shall be an amount equal to one and one-half (1-1/2%) per cent of each gross earnings for the preceding year; and after such period of eighty (80) years the percentage and amount so to be paid annually by the grantee shall be fixed by the Philippine Government.

"Such annual payments, when promptly and fully made by the grantee, shall be in lieu of all taxes of every name and nature — municipal, provincial, or central — upon its capital stock, franchise, right of way, earnings, and all other property owned or operated by the grantee under this concession or franchise."cralaw virtua1aw library

In its appeal from the lower court’s verdict of dismissal, plaintiff company insists that the foregoing text of its charter confers unqualifiedly a tax exemption on all properties owned by it. We do not think so. The phrase "under this concession or franchise" qualifying both terms; "owned" and "operated" indicates that mere ownership is not enough, but that the exemption is limited only to such activities pursued, or properties held, for the proper accomplishment of the stated purposes of the corporation, i. e., "to locate, construct, equip, maintain, and operate certain railways . . . (see Sec. 1, Act 1510). That the charter did not envision the acquisition or holding of private lands by the appellant for purposes foreign to its ends — and, therefore, did not likewise contemplate a tax exemption thereon — is apparent from the other provisions of the enabling act, thus:jgc:chanrobles.com.ph

"The grantee shall also have the right to acquire from corporations, or private individuals, by purchase, contract, lease, grant, or donation, any lands which may be necessary or useful for the construction, maintenance, and operation of the said lines of railway, or any of them.

The grantee shall also have the right to acquire by condemnation the lands necessary for the right of way, for bridges, for terminals, including wharves and docks at harbor points and elsewhere, for sidings, stations, engine houses, water stations, and other appropriate buildings and structures for the proper and convenient construction, operation, and maintenance of the lines of railway herein authorized: . . ." (Sec. 1, No. 2, fourth and fifth pars., Act No. 1510). (Emphasis supplied)

The above conclusion accords with the general view in American law:jgc:chanrobles.com.ph

"The general rule is that the exemption of the property of a railroad company includes the road and such property as is necessary and is used for the operation of the road, and grain elevators, warehouses and docks used in the transportation of the railroad’s freight or to store the same for a reasonably short time while awaiting delivery to the consignee. But the exemption does not include grain elevators and other structures which have been leased by a railroad company to private parties, or dwelling houses for the occupancy of workmen, hotels designed primarily for the accommodation of travelers upon the railroad, or timberlands acquired or sleepers and ties." (51 Am. Jur., p. 571). (Emphasis supplied)

In this case, there is not the slightest showing that the lots here involved are owned and held by the company pursuant to its authorized business; on the contrary, it is made to appear that said parcels of land are being rented to private individuals — thus failing to establish, even remotely, a purpose useful or necessary to the proper accomplishment and operation of its enfranchised undertakings. We do not believe that the tax exemption in plaintiff’s franchise was intended to enable it to accumulate tax free assets and profits without devoting them to the extension of its lines and the improvement of its services.

WHEREFORE, the judgment of the lower court appealed from is affirmed, with costs against appellant Manila Railroad Company.

Bengzon, C.J., Padilla, Bautista Angelo, Labrador, Concepcion, Barrera, Paredes and Dizon, JJ., concur.




Back to Home | Back to Main




















chanrobles.com





ChanRobles On-Line Bar Review

ChanRobles Internet Bar Review : www.chanroblesbar.com

ChanRobles MCLE On-line

ChanRobles Lawnet Inc. - ChanRobles MCLE On-line : www.chanroblesmcleonline.com






April-1961 Jurisprudence                 

  • A.C. No. 439 April 12, 1961 - LEDESMA DE JESUS-PARAS v. QUINCIANO VAILOCES

  • G.R. No. L-14158 April 12, 1961 - REPUBLIC OF THE PHIL. v. PHILIPPINE NATIONAL BANK, ET AL.

  • G.R. No. L-14324 April 12, 1961 - IN RE: WILLIAM LI YAO v. NARCISA B. DE LEON, ET AL.

  • G.R. No. L-15705 April 15, 1961 - REPUBLIC OF THE PHIL. v. DY CHAY

  • G.R. No. L-15861 April 15, 1961 - LIM GIOK v. BATAAN CIGAR AND CIGARETTE FACTORY, INC.

  • G.R. No. L-13325 April 20, 1961 - SANTIAGO GANCAYCO v. COLLECTOR OF INTERNAL REVENUE

  • G.R. No. L-15102 April 20, 1961 - ALFREDO GARCHITORENA v. REPUBLIC OF THE PHIL.

  • G.R. No. L-15950 April 20, 1961 - GERVACIO DAUZ v. FELIPE ELEOSIDA, ET AL.

  • G.R. No. L-16235 April 20, 1961 - PEOPLE OF THE PHIL. v. CARLOS MAGDALUYO

  • G.R. No. L-16473 April 20, 1961 - FELISA QUIJANO v. JACINTO TAMETA

  • G.R. No. L-16739 April 20, 1961 - VICENTE PENUELA, ET AL. v. ERNESTO HORNADA

  • G.R. No. L-16777 April 20, 1961 - QUINTIN CHAN v. JUAN B. ESPE

  • G.R. No. L-14711 April 22, 1961 - SMITH, BELL & CO., LTD. v. MANILA PORT SERVICE & MANILA RAILROAD CO., INC.

  • G.R. No. L-10367 April 25, 1961 - MARY MCD. BACHRACH v. PHILIPPINE TRUST CO., ET AL.

  • G.R. No. L-12602 April 25, 1961 - LUIS PINEDA v. COURT OF FIRST INSTANCE OF DAVAO, ET AL.

  • G.R. No. L-12918 April 25, 1961 - SANTIAGO BALMONTE v. JULIAN MARCELO, ET AL.

  • G.R. No. L-15123 April 25, 1961 - GENERAL SHIPPING CO., INC. v. SATURNINO C. PINOON

  • G.R. No. L-15957 April 25, 1961 - PEOPLE OF THE PHIL. v. BENJAMIN ESPIRITU

  • G.R. No. L-16051 April 25, 1961 - FERNANDO GOCHOCO, ET AL. v. CHANG HIOK, ET AL.

  • G.R. No. L-16733 April 25, 1961 - MANUELA MENDOZA ET AL. v. KAPISANAN NG MGA MANGGAGAWA SA MANILA RAILROAD CO.

  • G.R. No. L-17046 April 25, 1961 - JUAN ADUAN, ET AL. v. PANTALEON ALBA, ET AL.

  • G.R. No. L-11406 April 26, 1961 - MARIANO J. SANTOS v. ALEJANDRO DE GUZMAN

  • G.R. No. L-12822 April 26, 1961 - LIM BUN v. REPUBLIC OF THE PHIL.

  • G.R. No. L-12836 April 26, 1961 - MANILA TRADING AND SUPPLY CO. v. EDUARDO D. ENRIQUEZ, ET AL.

  • G.R. No. L-13143 April 26, 1961 - DEMETRIO CARPENA, ET AL. v. LUCIANO MANALO, ET AL.

  • G.R. No. L-14756 April 26, 1961 - EMILIANO BALADJAY v. ZOILO CASTRILLO, ET AL.

  • G.R. No. L-15381 and 82 April 26, 1961 - PEOPLE OF THE PHIL. v. MARIA MAYDIN

  • G.R. No. L-15410 April 26, 1961 - MANUEL M. ANTONIO v. MAURO SAMONTE, ET AL.

  • G.R. No. L-15415 April 26, 1961 - REPUBLIC OF THE PHIL. v. PEDRO ABACITE, ET AL. .

  • G.R. No. L-15700 April 26, 1961 - CRESENCIA VDA. DE BAKIT v. VERONICO ASPERIN, ET AL.

  • G.R. No. L-15872 April 26, 1961 - CITY OF MANILA v. ANTONIA EBAY

  • G.R. No. L-16234 April 26, 1961 - PEOPLE OF THE PHIL. v. MARIANITO FETALVERO, ET AL.

  • G.R. No. L-16596 April 26, 1961 - MANILA RAILROAD COMPANY v. CITY OF DAGUPAN, ET AL.

  • G.R. No. L-16659 April 26, 1961 - ALFREDO REYES v. JOSE PASCUAL

  • G.R. No. L-16878 April 26, 1961 - JUAN SANCHEZ v. OSCAR DEL ROSARIO

  • G.R. No. L-16963 April 26, 1961 - ROXAS Y CIA v. JOSE R. CABATUANDO, ET AL.

  • G.R. No. L-12236 April 28, 1961 - PEOPLE OF THE PHIL. v. BRAULIO BERSALONA, ET AL.

  • G.R. No. L-14793 April 28, 1961 - PHILIPPINE INDEPENDENT CHURCH v. JUANA MATEO, ET AL.

  • G.R. No. L-15065 April 28, 1961 - CESAR D. MILITAR v. VENTURA TORCILLERO, ET AL.

  • G.R. No. L-15139 April 28, 1961 - FELIX DE CASTRO, JR., ET AL. v. EMITERIO M. CASTAÑEDA, ET AL.

  • G.R. No. L-15877 April 28, 1961 - JOVENAL R. FERNANDEZ v. TAN TIONG TICK, ET AL.

  • G.R. No. L-15952 April 28, 1961 - SYBIL SAMSON, ET AL. v. NICASIO YATCO, ET AL.

  • G.R. Nos. L-16355-56 April 28, 1961 - IGNACIO GONZALES v. JOSE M. SANTOS, ET. AL.

  • G.R. No. L-16560 April 28, 1961 - TOMAS BENAZA, ET AL. v. ZOILO BONILLA, ET AL.

  • G.R. No. L-10763 April 29, 1961 - DELFIN YAMBAO v. ANGELINA GONZALES, ET AL.

  • G.R. No. L-11084 April 29, 1961 - ALEJANDRO QUEMUEL, ET AL. v. ANGEL S. OLAES, ET AL.

  • G.R. No. L-11499 April 29, 1961 - IN RE: REPUBLIC OF THE PHIL. v. GO BON LEE

  • G.R. No. L-11639 April 29, 1961 - DANIEL DE LEON v. JOAQUIN HENSON, ET AL.

  • G.R. No. L-11765 April 29, 1961 - DAMASO DESCUTIDO, ET AL. v. JACINTO BALTAZAR, ET AL.

  • G.R. No. L-12888 April 29, 1961 - R. F. NAVARRO v. SUGAR PRODUCERS COOPERATIVE MARKETING ASSOCIATION, INC.

  • G.R. No. L-13252 April 29, 1961 - CONSUELO TAN VDA. DE ZALDARRIAGA v. EDUARDO D. ENRIQUEZ ETC., ET AL.

  • G.R. No. L-13515 April 29, 1961 - PAZ BACABAC v. VICENTE F. DELFIN, ETC., ET AL.

  • G.R. No. L-13976 April 29, 1961 - PEOPLE OF THE PHIL. v. BERNARDO Z. OBALDO

  • G.R. No. L-13994 April 29, 1961 - VALERIO P. TRIA v. WENCESLAO A. LIRAG

  • G.R. No. L-14146 April 29, 1961 - NG LIAM KENG v. REPUBLIC OF THE PHIL.

  • G.R. No. L-14220 April 29, 1961 - DOMINGO E. LEONOR v. FRANCISCO SYCIP

  • G.R. No. L-14421 April 29, 1961 - GUAGUA ELECTRIC LIGHT PLANT COMPANY, INC. v. COLLE CTOR OF INTERNAL REVENUE, ET AL.

  • G.R. No. L-14603 April 29, 1961 - RICARDO LACERNA, ET AL. v. AGATONA PAURILLO VDA. DE CORCINO

  • G.R. No. L-14712 April 29, 1961 - PEOPLE OF THE PHIL. v. FEDERICO CORTES

  • G.R. No. L-14783 April 29, 1961 - PEOPLE OF THE PHIL. v. MARCIAL P. AMA, ET AL.

  • G.R. No. L-14871 April 29, 1961 - FLORENCIA M. GUANCO v. SEGUNDO MONTEBLANCO, ET AL.

  • G.R. No. L-14969 April 29, 1961 - LAND TENURE ADMINISTRATION v. CEFERINO ASCUE, ET AL.

  • G.R. No. L-15014 April 29, 1961 - PEOPLE OF THE PHIL. v. VICTORIANO VILLANUEVA

  • G.R. No. L-15171 April 29, 1961 - LEPANTO CONSOLIDATED MINING COMPANY, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-15225 April 29, 1961 - C. G. NAZARIO & SONS, INC. v. CENTRAL BANK OF THE PHIL.

  • G.R. No. L-15347 April 29, 1961 - GENERAL BUS CORPORATION, ET AL. v. GREGORIO CUNANAN

  • G.R. No. L-15386 April 29, 1961 - JOSE L. UY v. PACITA UY, ET AL.

  • G.R. No. L-15394 April 29, 1961 - CESARIO DE LEON, ET AL. v. MACAPANTON ABBAS, ET AL.

  • G.R. No. L-15445 April 29, 1961 - IN RE: FLORANTE C. TIMBOL v. JOSE C. CANO

  • G.R. Nos. L-15490-93 April 29, 1961 - CAMARINES SUR INDUSTRY CORPORATION v. JAIME T. BUENAFLOR

  • G.R. No. L-15506 April 29, 1961 - GOVERNMENT SERVICE INSURANCE SYSTEM v. COURT OF INDUSTRIAL RELATIONS, ET AL.

  • G.R. No. L-15515 April 29, 1961 - PEOPLE OF THE PHIL. v. ROGER M. PERETE, ET AL.

  • G.R. No. L-15564 April 29, 1961 - PASCUAL STA. ANA v. EULALIO MENLA

  • G.R. No. L-15739 April 29, 1961 - EMILIANO LACSON, SR. v. JACINTO DELGADO

  • G.R. No. L-15768 April 29, 1961 - TALIM QUARRY COMPANY, INC., ET AL. v. GAVINO BARTOLA BERNARDO ABELLO, ET AL.

  • G.R. No. L-15775 April 29, 1961 - TAN YU CHIN v. REPUBLIC OF THE PHIL.

  • G.R. No. L-15960 April 29, 1961 - PEOPLE OF THE PHIL. v. JUAN REGINALDO, ET AL.

  • G.R. No. L-15973 April 29, 1961 - PERPETUA GARGOLLO v. ALFREDO DUERO, ET AL.

  • G.R. No. L-16071 April 29, 1961 - RUFINO O. ABUDA v. AUDITOR GENERAL

  • G.R. No. L-16137 April 29, 1961 - VIRGINIA AMOR, ET AL. v. COMMISSIONER OF INTERNAL REVENUE

  • G.R. No. L-16138 April 29, 1961 - DIOSDADO C. TY v. FIRST NATIONAL SURETY & ASSURANCE CO, INC.

  • G.R. No. L-16221 April 29, 1961 - RODOLFO GERONIMO v. MUNICIPALlTY OF CABA, LA UNION

  • G.R. No. L-16422 April 29, 1961 - JUSTINA C. SANTOS, ET AL. v. NATIVIDAD ALMEDA LOPEZ, ET AL.

  • G.R. No. L-16448 April 29, 1961 - REGISTER OF DEEDS OF QUEZON CITY v. HONESTO G. NICANDRO, ET AL.

  • G.R. No. L-16509 April 29, 1961 - PEOPLE OF THE PHIL. v. BIENVENIDO TAN, ET AL.

  • G.R. No. L-16535 April 29, 1961 - PEOPLE OF THE PHIL. v. PANTALEON ELPEDES

  • G.R. No. L-17015 April 29, 1961 - GEORGE H. EVANS, ETC. v. WORKMEN’S COMPENSATION COMMISSION, ET AL.

  • G.R. No. L-17114 April 29, 1961 - JULIA M. NEIBERT v. GREGORIO D. MONTEJO

  • G.R. No. L-17202 April 29, 1961 - BENGUET CONSOLIDATED, INC. v. COTO LABOR UNION (NLU), ET AL.

  • G.R. No. L-17377 April 29, 1961 - FRANCISCO LAGUNILLA v. JUAN O. REYES, ET AL.

  • G.R. No. L-18359 April 29, 1961 - CALIXTO DUQUE, ET AL. v. COURT OF FIRST INSTANCE OF MANILA, ET AL.